Category Archives: Failed foreign policy

Yemen’s Revolution in 1961and Today

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With the mud and fog of Yemen’s winter came a lull in the fighting between royalist guerrillas and the rebels who overthrew Imam Mohamed el Badr three months ago. But the danger remained that the distant little struggle could bring bloody conflict to other parts of the Middle East. In the hopes of isolating the feud, President Kennedy rushed off notes to Egypt’s Nasser, Crown Prince Feisal of Saudi Arabia, Jordan’s King Hussein and Rebel Leader Abdullah al Sallal, who now calls himself President of Yemen.

*** Ever since, Yemen has been smoldering and countries such as Saudi Arabia, Egypt, Jordan have had thousands of troops on the ready and in some cases active as hostilities in the streets and countryside continued. Today is no different. Nothing was ever resolved much less pledges and agreements were unfinished. Yemeni conditions were ripe for Iran.

The power shift is clearly underway in the Middle East and at last it has gained the attention, albeit perhaps too late of Gulf States. The Saudi Kingdom finally began to take the lead in fending off the fall of Yemen soliciting the assistance of near countries. The Saudis had to no choice as the Shiite Crescent is emerging. Beyond the typical airstrikes on key targets, warships are part of the operation.

Saudi and Egyptian warships deployed to Bab al-Mandab, the strategic strait off Yemen at the entrance of the Red Sea, Egyptian military officials said. The strait gives the only access to Egypt’s Suez Canal from the Arabian Sea and is a vital passage for shipping between Europe and Asia.

*** With Yemen’s president out of the country and its army fractured, al Qaeda is trying to define itself as the most capable force to protect the Sunni majority and gain support in what it calls a holy war against a Shiite rebel movement backed by Iran. Western diplomats have warned that Al Qaeda in the Arabian Peninsula, based in Yemen, could take advantage of the power vacuum to expand. “We’re watching very carefully at the moment, with all the security failures in Yemen, that the opportunity AQAP has right now may allow them to expand and will enable their activities,” said a senior State Department official. *** The United States has not been a reliable force in recent months except with barely sharing intelligence, evacuation operations for possible downed aircraft and signals intelligence. The Middle East has sidelined America with varied reasons including lack of leadership and strategy. Rather than Obama bowing to the Saudi royalty, Obama just bowed out.

(Reuters) – Saudi Arabia kept some key details of its military action in Yemen from Washington until the last moment, U.S. officials said, as the kingdom takes a more assertive regional role to compensate for perceived U.S. disengagement. The Middle East’s top oil power told the United States weeks ago it was weighing action in Yemen but only informed Washington of the exact details just before Thursday’s unprecedented air strikes against Iran-allied Houthi rebels, the officials said. U.S. President Barack Obama’s Middle East policy increasingly relies on surrogates rather than direct U.S. military involvement. He is training Syrian rebels to take on the government of President Bashar Assad and this week launched air strikes to back up Iraqi forces trying to retain the city of Tikrit. To Obama’s Republican critics, he is ceding the traditional U.S. leadership role. The White House denies it is disengaging from the region and says it has been in close contact with the Saudis over their plans in recent days. Although the Saudis spoke with top U.S. officials as they debated an air assault in support of embattled Yemeni President Abd-Rabbu Mansour Hadi, U.S. officials acknowledged gaps in their knowledge of the kingdom’s battle plans and objectives. Asked when he was told by Saudi Arabia that it would take military action in Yemen, General Lloyd Austin, the head of the U.S. military’s Central Command, told a Senate hearing on Thursday he spoke with Saudi Arabia’s chief of defense “right before they took action.” He added that he couldn’t assess the likelihood of the campaign succeeding because he didn’t know the “specific goals and objectives.” Adel al-Jubeir, Saudi Arabia’s ambassador to the United States, said Riyadh consulted closely with Washington on Yemen – but ultimately decided it had to act quickly as Houthi rebels moved toward Hadi’s last redoubt in the southern city of Aden. “The concern was, if Aden falls, then what do you do?” al-Jubeir told a small group of reporters on Thursday. “The concern was that the situation was so dire you had to move.” Saudi Arabia’s air strikes point toward an aspiration to defend its regional interests with less reliance on the U.S. security umbrella that has long been the main thrust of Washington’s relations with the oil-rich kingdom.

MORE ASSERTIVE Riyadh has been growing increasingly assertive since early 2011, when Washington’s reluctance to back former Egyptian leader Hosni Mubarak in the face of mass protests led the Saudis to doubt its commitment to traditional Arab allies. Obama’s decision in summer 2013 not to bomb Syria after the use of poison gas there, coupled with its sudden announcement it had conducted secret nuclear talks with Riyadh’s nemesis Iran, further alarmed the Saudis. “If the operation is successful, I think we will see a major turn in Saudi foreign policy. It’s going to be assertive, become more aggressive in dealing with the Iranian expansionism,” said Mustafa Alani, an Iraqi security analyst with ties to the Saudi Interior Ministry. The Obama administration is reluctant to get drawn into direct military action in another Arab conflict when it is already facing daunting challenges in Syria and Iraq. The worsening Yemen conflict forced Washington to evacuate all remaining U.S. special forces from the country, further undermining the U.S. campaign of drone strikes against the most lethal branch of al Qaeda based there. Sunni Saudi Arabia’s intervention in Yemen is the latest front in a growing regional contest for power with Iran that is also playing out in Syria, where Tehran backs Assad’s government, and Iraq, where Iranian-backed Shi’ite militias are playing a major role in fighting. While U.S. officials have downplayed the scope of the relationship between Iran and Yemen’s Houthis, al-Jubeir said that members of Iran’s Islamic Revolutionary Guard Corps and Iranian-backed Hezbollah are on the ground advising the Houthis. One senior U.S. official described Riyadh’s operation as a “panic response” to the fast-deteriorating situation in Yemen that the Saudis feared could spill over its border. The official, speaking on condition of anonymity, suggested that the 10-nation Saudi-led coalition had been patched together so quickly that its effectiveness was in doubt. The White House says it will not join directly in military operations in Yemen, but has set up a cell to coordinate U.S. military and intelligence support to the operation. But U.S. officials said they were sharing intelligence information on a limited basis so far. U.S. officials said they discussed the deteriorating situation in Yemen with Saudi Arabia over the course of recent weeks. Secretary of State John Kerry discussed Yemen at length during a March 5 visit to Riyadh, but it was “not clear (the Saudis) had made any decisions about potential action at that point,” said a senior U.S. official who spoke on condition of anonymity. “We had been talking with the Saudis throughout the course of the last several days about what they were thinking and what type of support we could render with regards to their actions in Yemen,” U.S. National Security Council spokeswoman Bernadette Meehan said.

The Hillary-Ettes are Marking Your Words

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The Hillary team is out in full force putting out threats for words used by media and like men when writing stories about Hillary. Use of keywords forces a label to be attached to those speaking them or writing them. Hillary said she believes in new beginnings, those as a new grandmother, a new hairdo, a new email address and then a new relationship with the media.

https://www.youtube.com/watch?v=cLbDkvHvWxU&feature=player_detailpage#t=3

So far, this newness is not working so well. Get out the thesaurus and make good use of it.

Media tweet responses can be read here.

The 13 words you can’t write about Hillary Clinton anymore

Hillary Clinton has been in the public eye for a very long time, which means much has been written about her — including quite a few adjectives. But some of these adjectives are now off-limits.

That’s according to the Clinton “Super Volunteers,” who have promised to track the media’s use of words they believe to be sexist code words. The New York Times’s Amy Chozick tweeted a missive she received from the group (which we would note is almost definitely not connected to official Team Clinton) on Wednesday:

So these words are now off the table: “polarizing,” “calculating,” “disingenuous,” “insincere,” “ambitious,” “inevitable,” “entitled,” “over-confident,” “secretive,” “will do anything to win,” “represents the past,” and “out of touch.”

The thinking here, of course, is that these kinds of words are attached to Clinton in a way that they wouldn’t be attached to male candidates — that people wouldn’t call Clinton “ambitious” if she weren’t a woman, that there is a double-standard for such traits.

But do the media actually use these words to describe Clinton? Well, yes, but only if you loosely define “the media” as “the conservative media” and “people who don’t like Hillary Clinton.”

In fact, if you Google “Hillary Clinton” and “calculating,” there are 140,000 results. The first slew of results come from conservative outlets like The Daily Caller, The Blaze, Breitbart, the Daily Telegraph and also the Republican “America Rising” super PAC. One result comes from the Los Angeles Times, but it’s a defense Bill Clinton lodged in 2007 against the attacks.

“Calculating” is almost completely something used to attack Clinton or describe the attacks on her. The same goes for “disingenuous,” “insincere,” “entitled,” “secretive,” “over-confident,” “represents the past” and “out of touch.” These are all loaded words  and not terms used casually by mainstream media journalists like Chozick to describe a politician.

The same cannot be said for some other words. “Polarizing” is a word that has long followed Clinton, as has “ambitious,” and “inevitable.”

And some of these words should indeed be reined in — if not necessarily for the reason this group wants.

“Polarizing,” for example, is a word that now describes pretty much every well-known politician in the country, up to and including Barack Obama and George W. Bush. The politician who isn’t polarizing is the exception rather than the rule. And it usually means that the politician just isn’t well known enough to be polarizing. Yet.

And while we’re at it, go ahead and retire “inevitable,” too. We’ve been talking about it for a while, sure, but it’s probably been overdone (not too mention it aims to predict the future). Now it’s all about whether Clinton gets any capable primary opponents. Until then, call her a huge favorite and leave it at that.

As for “ambitious,” nobody runs for president without having an extraordinary amount of ambition. Not Ted Cruz, not Barack Obama, not Mitt Romney or Jeb Bush, and definitely not Bill Clinton — all of whom have had their unusual amount of ambition chewed over by the media.

 

A Typical Islamic State Fighter’s Story

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Lost, unsure, lack of direction. The solutions are provided by the local mosques.

Captured IS Militants Explain Why They Fought

AL-MALIKIYAH, SYRIA—

The Islamic State fighter spoke softly, his voice unbroken by adolescence.  A prisoner of Kurdish YPG (People’s Protection Units) forces, he sent a message to his family asking for forgiveness.  “I destroyed myself and I destroyed them along with me.”

The Syrian youth is among several IS detainees brought to a prison in al-Malikiyah, northeastern Syria. They were captured in a YPG offensive last month to regain Tal Hamis from IS control.

Both the youth and a Turkish fighter spoke separately to VOA’s Kurdish Service while in custody.  Both were hooded but unshackled, the hoods removed when they spoke.  Their names have been changed and identifying details obscured.

The Turkish prisoner, Ahmet, told a story familiar to every expert on IS recruiting.  A young man adrift – a sometime university student, sometime baker, interested in political Islam, in touch online and by phone with a friend with similar or, as it turned out, more extreme inclinations.

The friend traveled to Syria and told Ahmet he had joined the Islamic State group.  Ahmet said he was surprised but intrigued.  “I don’t find American, British or other news agencies, especially on Middle East Muslims, very trustworthy,” he told VOA.  “I wanted to see it with my own eyes.”

Fighting ‘for God’

Ahmet said he traveled to Syria in part to observe, but also because of his beliefs and what he called “the repression.”

“I wanted to get rid of this repression according to God’s order,” he said. “I came to fight for God.  When I kneel down to pray, I think about bombardments that I witnessed, the deaths of children I saw with my own eyes.  I came across all of these.”

Traveling south to a contact near the Syrian border, Ahmet said he met some Europeans, an American, someone from China and a Russian – from Dagestan, he guessed.

Once in Syria, they were divided into groups.  The local leader wanted them to go to the front right away. “We were all very confused because none of us had seen war,” he said.

Four months into his new life with IS, Ahmet said he was told to secure a village near Tal Hamis.  Then the YPG attacked: “We all started to run.”

His companions were killed; he was shot in the leg. “Thirteen, 14 kilometers I crawled with this wounded leg, for three days.”  He hid in a house until the owner came back and turned him over to the YPG.  The Kurds, he said, took him to a hospital, then to jail.

The Syrian prisoner’s tale also starts with a conversion – not online, not in the mosques, but through someone he knew.

Hussein left his family without revealing his plan, then threw himself into his new life: physical training, prayer, weapons instruction.  There were foreigners there, he said, from Senegal, France, Kazakhstan, Turkey, training in separate groups. The cook, he said, was Chinese.

Once his training was complete, Hussein said he was sent from village to village, at times deployed at checkpoints, other times taking part in battles.  He, too, was captured in the Tal Hamis campaign.

Asked about some of the more abhorrent practices of the Islamic State group, Hussein said he never witnessed beheadings, but he did see videos of them shared by cell phone.  He said he was unaware of “jihadi marriages” – women recruited for sexual use by the militants.  And he knew nothing, he said, about how children were recruited, though he added there was a 13-year-old in his group.

Hussein’s own age remained unclear.  His YPG guards said he told them he was 19.  Later the Kurdish authorities said he was born in 1997.  Despite a wisp of a moustache and the beginnings of a beard, his voice and mannerisms made him appear much younger.

Gray zone

What comes next for the prisoners is unclear. They have not been seen by the International Red Cross and Red Crescent, but Kurdish officials say they would welcome any such visit.

Both sides are in a gray zone.  Despite declaring themselves Islamic State soldiers, they are non-state combatants.  Their captors are non-state actors as well.  The de  facto Kurdish government of the self-declared Rojava region is, from a legal point of view, part of Syria.  Kurdish authorities told VOA some detainees have been freed.

Hussein has no thoughts of release.  “I expect I will stay in prison, for sure,” he said.

While the Syrian youth expressed remorse, his Turkish comrade offered no such misgivings.  “I am a student,” Ahmet said, shortly before guards put the hood back over his head and led him away.

Hussein put the hood back on himself.

Widespread Refugees from Middle East to Europe

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From hundreds of thousands to millions of refugees from one country to another speaks to failed policy, failed government and failed control. There is Cuba, Syria, Iraq, Yemen and Libya. An examination of Libya speaks to a global problem and the costs to Europe. Not only is Europe failing in a duty, but the United States and the United Nations fail equally. I had a little communications exchange with the journalist from the WSJ to gain more insight.

When there is mass evacuation, humanitarian conditions take a nose dive. Can there be integration? What about housing, education or healthcare?

Where does the money come from and what about the country of origin, does it get classified as a failed nation with no solution?

Immigrants attempting to cross the Mediterranean to seek asylum in Europe have disrupted shipping. Above, the Italian navy rescued shipwrecked immigrants off the coast of Africa in June.

Europe’s Cargo Ships Diverted to Sea Rescues

Commercial vessels on busy Mediterranean routes asked to assist with waves of migrants

By: Liam Moloney

ROME—In September, Italian authorities ordered oil tankers owned by Mediterranea di Navigazione SpA to help in five operations to rescue 600 boat people trying to cross from Libya to Italy in flimsy vessels.

The rescue operations cost the group €100,000 ($109,473) in extra costs, such as fuel and personnel. Now, managing director Paolo Cagnoni is considering changing his vessels’ routes to avoid the flow of migrant boats that is likely to surge this spring.

“We’ve been drawn into this human exile, but our crews aren’t equipped,” Mr. Cagnoni said. “It’s a disaster.”

The waves of African and Middle Eastern seaborne migrants attempting to reach Europe—218,000 tried to get to Greece and Italy last year—are causing a little-noticed but serious problem for the mercantile ships that ply the Mediterranean.

Last year, Italian authorities called on 700 mercantile vessels to help rescue about 40,000 migrants. One ship supplying the oil platforms off the Libyan coast participated in 62 operations. Many of the ships are Italian, but Greek vessels, as well as ships of other nationalities, are also involved in rescues of migrants trying to reach the Greek coast.

The busy maritime traffic around the world’s biggest seaborne migration route leaves private vessels on the front line of a major problem. Mercantile traffic in the Mediterranean accounts for about a fifth of the world’s total. And the area between North Africa and Italy—which has the highest flow of migrants—represents about a third of total Mediterranean traffic.

As a result, the rescue operations have placed a heavy burden on private vessels, which typically have crews of fewer than 20 and lack the training, medical support and life jackets to help several hundred migrants at a time. Crews often ransack their own food and clothing supplies to help the migrants once they get on board.

The ships—which must, according to maritime law, come to the aid of a boat in distress—have also been drawn into dangerous situations. In February, the Italian coast guard ordered one ship to act as a barrier to help pull scores of migrants from an inflatable dinghy in gale-force winds. Coast guard officials from the command center in Rome often have to guide crews on very large vessels to assist flimsy boats and dozens of migrants who often don’t know how to swim.

For instance, last year vessels owned by Denmark’s Maersk Line, which move huge cargoes of electronics, clothing and food and can be 1,312 feet long, rescued 1,100 refugees in four separate operations and played a supporting role in an additional six incidents. A couple of weeks ago, a Maersk ship helped rescue 150 migrants near the Libyan coast, it had to divert its course and sail some 150 miles to bring them to a Sicilian port.

“Container ships are big vessels that don’t maneuver easily” and are packed with containers, leaving limited space for migrants, says Steffen Conradsen, Maersk Line’s head of incident and crisis management. “We are not equipped for such operations.”

The diverted ships lose as much as a week disembarking the migrants, cleaning the vessel and resupplying, at an extra cost of up to $500,000. Insurance covers only part of the extra costs, and appeals from owners for government compensation have had little impact.

Now, shipping groups fear the problem will explode this year. Last year, Italian Navy ships patrolled close to the Libyan coast to help migrant boats as part of an operation dubbed Mare Nostrum. But the Italian patrols were replaced a few months ago by EU patrols whose mandate is to venture no farther than 30 miles from the Italian coast.

Meanwhile, the number of boat people continues to soar, up 43% in the first two months of 2015 compared with a year earlier. The head of EU border control agency Frontex recently said that hundreds of thousands of people in Libya could be ready to make the passage.

The EU’s limited patrols and the expected surge in boat people when the weather improves in the spring mean that coast guard authorities are likely to call on mercantile vessels more often. Shipping owners’ appeals for countries to mount large-scale sea patrols to deal with the problem—akin to the international response to piracy around the Horn of Africa—have fallen on deaf ears.

“We have become part of a rent-a-vessel program because countries can’t get their act together,” says Luca Sisto, a senior official at the Italian shipping lobby Confitarma.

Mr. Sisto says that concern about the safety of their vessels and crew—particularly when oil and natural-gas tankers are involved—may push some captains to refuse calls for help.

Big players such as Maersk Line, the world’s biggest container operator and a unit of shipping and oil giant A.P. Moeller-Maersk A/S, can absorb the extra costs resulting from the rescue operations. But smaller ones more dependent on the central Mediterranean corridor grumble that the rescues could result in serious financial problems.

“The flow of refugees has reached a size where we can no longer cope,” says Thomas Rehder, president of the European Community Shipowners’ Associations. “This is the responsibility of governments, not merchant ships.”

Frontex Joint Operation Triton

Concerted efforts for managing migrator flows in the Central Mediterranean

What is Triton?

Triton is a Frontex coordinated joint operation, requested by the Italian authorities that will start its activity as from 1 November 2014 in the Central Mediterranean to support Italy.

How have the details of the operation been defined?

The details of Triton, including the operational area and the necessary assets, have been agreed between Frontex and Italy as the host state on the basis of the requests for assistance made by the Italian authorities. The final setting of the operation fully matches the requests made by the Italian authorities. Triton will rely on human and technical resources made available by the participating Member States.

How many Member States have made available technical and human resources and what?

Today 21 Member States have indicated their willingness to participate with human (65 guest officers in total) and technical resources (12 technical assets) at the start of the joint operation Triton; others might follow in the coming months. Technical equipment: 4 Fixed Wing Aircrafts, 1 Helicopter, 4 Open Shore vessels, 1 coastal Patrol Vessel, 2 Coastal patrol boats. Human Resources: 65 men/months in total.

What is Triton’s budget?

Its monthly budget is estimated at €2.9 million per month. In order to finance the launch and the first phase of the operation, funds have been reallocated from the Internal Security Fund and from within the Frontex budget. An increase of the Frontex 2015 budget has to be agreed by the European Parliament and the Council in order to finance the operation with the same intensity in the year 2015 and in the longer run.

Which rules will apply to the Frontex coordinated operation when it comes to migrants’ rights?

As for all Frontex operation, Triton will be operating in full respect of international and EU law, including respect of fundamental rights and of the principle of non-refoulement.

Will Triton also be participating in search and rescue activities?

The role of Frontex is key to support Member States towards effective border control in the Mediterranean region, and at the same time to provide assistance to persons or vessels in distress during these operations. Frontex is entrusted with assisting Member States in circumstances requiring increased technical assistance at the external borders, taking into account that some situations may involve humanitarian emergencies and rescue at sea. Although Frontex is neither a search and rescue body nor does it take up the functions of a Rescue Coordination Centre, it assists Member States to fulfil their obligation under international maritime law to render assistance to persons in distress.

Will Triton replace Mare Nostrum?

Joint operation Triton is intended to support the Italian efforts at their request, and does not replace or substitute Italian obligations in monitoring and surveying the Schengen external borders and in guaranteeing full respect of EU and international obligations1 in particular when it comes to search and rescue at sea. It implies that Italy will have to continue making continued substantial efforts using national means, fully coordinated with the Frontex operation, in order to manage the situation at the external borders.

Background on Frontex assistance to Italy

Weeks after the tragic drowning of over 300 persons around the Island of Lampedusa in October 2013, Italy launched a major search and rescue operation called ‘Mare Nostrum’ operated by the Italian Navy.

The Mare Nostrum operation is on-going close to the Libyan coast with Italian naval assets. The EU has supported the operation financially with €1.8 million from the emergency actions under the External Borders Fund.

Frontex has also provided assistance to Italy through the two coordinated joint operations Hermes and Aeneas. Both these operations will be replaced by Triton.

The joint operation Hermes coordinated by Frontex has, in one form or the other and with few interruptions, been going on for several years. Italy has acted as the sole host state.

This joint operation has been on-going close to the Italian coast to control the EU external borders in line with the mandate of the Frontex Agency with a yearly budget for 2014 of around €5 million. In accordance with the host state’s request, sea borne assets in the joint operation come from Italy (Coast Guard and/or Guardia di Finanza); other Member States have contributed with one surveillance aircraft and guest officers on land to help with screening/debriefing.

Frontex also coordinated joint operation Aeneas with Italy as host state. This operation mainly focussed on migratory flows from Egypt and Turkey (via Greece) to Italy.

Among others, the obligations stemming from the Schengen Borders Code and the Charter of Fundamental Rights, as well as the International convention for the safety of life at sea (SOLAS), the International convention on maritime search and rescue (SAR) as well as resolutions from the International maritime organisation (IMO).

 

Global Roadway with Fraud in Trade Agreements

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Being a fully connected world has major implications for fraud, terror and collusion. It is already a major security threat to not control borders and vet travelers. When it comes to foreign transportation, control and inspections receive little control as well.

Plans for superhighway linking Britain and America

The Russian proposal would allow Britons to travel overland from Britain to the United States

Plans for an ambitious 12,400-mile superhighway linking the Atlantic and the Pacific are reportedly being considered by Russian authorities.

The Trans-Eurasian Belt Development would see the construction of a vast motorway across Russia. It would connect with existing networks in Europe, making road trips to eastern Russia a far easier proposition. While roads do currently run across most of Russia, the quality tends to deteriorate the further you travel from Moscow.

The proposal, outlined in the Siberian Times, would see the road follow a similar route to the Trans-Siberian railway, through cities including Yekaterinburg, Irkutsk and Vladivostok. A new high-speed train line would also be constructed, along with pipelines for gas and oil. The rail network may also be extended to the Chukotka region of Russia and across the Bering Strait to Alaska – making overland trips from Britain to the US – via the Channel Tunnel – a possibility.


Much of eastern Russia’s road network is of poor quality (Photo: AP/Fotolia)

The idea, which developers hope will help boost tourism and make Russia a global transportation hub, was presented at a meeting of the Russian Academy of Science. But he added: “It will solve many problems in the development of the vast region. It is connected with social programs, and new fields, new energy resources, and so on.

“The idea is that basing on the new technology of high-speed rail transport we can build a new railway near the Trans-Siberian Railway, with the opportunity to go to Chukotka and Bering Strait and then to the American continent.”


The Trans-Siberian (Photo: Alamy)

The Trans-Siberian Railway links Moscow and Vladivostok, covers 9,258km (6,152 miles) and takes seven days to complete.

According to Anthony Lambert, Telegraph Travel’s rail expert: “The principal attraction of the journey is, of course, the Russian landscape – the vast panoramas and sense of immensity so vividly captured by such artists as Isaac Levitan and Ivan Shishkin. The taiga is mesmerising.

“Looking out at the panorama of larch, silver fir, pine and birch induces the kind of reverie that is one of the pleasures of train travel, a random stream of thoughts and images that drifts on like the forest. In clearings, villages that could have come from a Levitan or Shishkin painting break the spell and make one wonder what life must be like in such a remote land.”

Beyond questionable financiers of a global highway, the elites and government investments with carve-outs lead to other implications and policy decisions.

Leaked Pacific trade pact draft shows investment carve-outs sought

(Reuters) – Australia’s medicine subsidies, Canadian films and culture, and capital controls in Chile would be carved out from investment protection rules being negotiated in a Pacific trade pact, according to a draft text released by Wikileaks on Wednesday.

An investment chapter, dated Jan. 20, from the 12-nation Trans-Pacific Partnership (TPP) deal was released amid controversy over rules allowing companies to sue foreign governments, which critics say should be dropped from the pact.

The 55-page draft says countries cannot treat investors from a partner country differently from local investors, lays out compensation to be paid if property is expropriated or nationalized and sets out how to resolve disputes.

Consumer group Public Citizen said the definition of investment was too broad, covering even “failed attempts” to invest such as channeling resources to set up a business. But Center for Strategic and International Studies senior adviser Scott Miller said most treaties defined investment broadly and the draft was close to a publicly available U.S. model text.

Lise Johnson, head of investment law at the Columbia Center on Sustainable Investment, said governments’ rights to regulate for environmental and public interest purposes seemed “very weak.” But Miller said they were not a big carve-out.

A footnote says that investor-state dispute settlement (ISDS) rules do not apply to Australia, although it notes: “deletion of footnote is subject to certain conditions.”

The exemptions sought would protect countries from being sued by foreign corporations that complain they do not get the same treatment as domestic firms because of government actions, such as sovereign debt defaults or government procurement.

Mexico, Canada, New Zealand and Australia want a free pass for foreign investments requiring special approval, often for sensitive local sectors such as banking or communications.

Australia wants to exclude medical programs and Canada to exempt cultural sectors, including films, music and books.

An annex states that Chile’s central bank can impose capital controls and maintains restrictions on foreign investors transferring sale proceeds offshore.

Chile and other emerging markets have seen large inflows of foreign investment, which can push up currencies and destabilize the local economy.

Critics argue the rules give companies too much power to sue governments. But business groups say they are necessary to stop unscrupulous governments from discriminating against foreigners.

TPP countries hope to wrap up negotiations on the deal by midyear.

A U.S. Trade Representative spokesman said investment agreements sought to protect Americans doing business abroad and ensure the ability to regulate in the public interest at home.